California Resources Corp (CRC)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 63.29 | 72.60 | 70.65 | 63.85 | 11.09 |
| Days of sales outstanding (DSO) | days | 48.62 | 30.62 | 49.75 | 47.34 | 38.38 |
| Number of days of payables | days | 259.51 | 247.03 | 406.21 | 283.06 | 49.00 |
| Cash conversion cycle | days | -147.59 | -143.81 | -285.81 | -171.87 | 0.48 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 63.29 + 48.62 – 259.51
= -147.59
The cash conversion cycle of California Resources Corp has shown a notable improvement over the years, transitioning from a positive 0.48 days as of December 31, 2019, to negative figures in subsequent years. By December 31, 2021, the company's cash conversion cycle had decreased significantly to -171.87 days, indicating a more efficient management of working capital. This trend continued with further reductions in the cash conversion cycle to -285.81 days by December 31, 2022, -143.81 days by December 31, 2023, and -147.59 days by December 31, 2024.
The consistently negative values of the cash conversion cycle suggest that California Resources Corp has been able to convert its investments in inventory and receivables into cash at a rapid pace. This improvement reflects the company's effectiveness in managing its operating cycle, enhancing liquidity, and potentially reducing reliance on external financing.
Peer comparison
Dec 31, 2024